Bitcoin Stable Above IDR 2 Billion, Investors Wait For Fed Interest Rate Decision

JAKARTA - The price of Bitcoin (BTC) is still stable above IDR 2 billion, which is driven by expectations of cutting the Fed's interest rates, increasing institutional demand, and the technical power of prices maintained above support levels.

The fault of the FOMC meeting released this week shows a more dovish attitude from Fed officials. Most participants considered that the relaxation of monetary policy was appropriate for the remainder of this year.

The move follows this year's first cuts in September, amid signs of weakening labor markets and stagnation of inflation above the 2% target.

Investors assess that this monetary easing will weaken the attractiveness of the US dollar and encourage interest in rare assets such as Bitcoin.

Tokocrypto analyst, Fyqieh Fachrur, assessed that even assessing the US expansionary policy, including the US$2.5 trillion injection of funds through the Reverse Repo program, will be the main fuel for the next Bitcoin bullish cycle.

The loose monetary policy reduces the attractiveness of fiat-based assets and strengthens the Bitcoin narrative as a hedge asset against the weakening of the US dollar. Like 2020-2021, the decline in real yields is usually followed by a surge in crypto demand, especially BTC," he said.

Technically, Bitcoin (BTC) broke its weekly high of 126,198 US dollars (Rp2.08 billion), before consolidating in the range of 122,000 US dollars (Rp2.01 billion).

According to Fyqieh, the market is currently entering a healthy consolidation phase. If BTC is able to survive above $120,000 and penetrate 124,850 US dollars, the opportunity towards US$130,000 (Rp2.15 billion) is wide open.

"However, failure to maintain the level of 119,500 US dollars (Rp1.98 billion) could trigger short-term corrections of up to 117,000 US dollars (Rp1.94 billion)," he explained.

Although Bitcoin's momentum is currently still positive, analysts still warn of external risks that will affect the market.